Psychological Vulnerability In Payment Fraud: 5 Questions You Should Ask To Avoid Losses

Fraudsters often create convincing facades, but a lack of credible online presence can be a red flag. For instance, a legitimate e-commerce site will have secure payment options and customer reviews

If digital payments are the norm, fraud is an ever-present risk. Staying vigilant is important, especially for young individuals beginning their financial journeys. To them, I'd like to offer the C.H.E.C.K framework — a straightforward way to protect yourself from digital payment fraud.

This method encompasses five critical aspects: Credibility, Haste, Excess Information, Control, and Known Platform. Let's break down each element to understand how it can safeguard your financial transactions.

CREDIBILITY: VERIFY THE PAYEE'S TRUSTWORTHINESS

When making a digital payment, always verify the authenticity of the payee. Ask yourself, "Is this payee trustworthy?" Research the business or individual requesting the payment. Look for reviews, official websites, and contact information. Fraudsters often create convincing facades, but a lack of credible online presence can be a red flag. For instance, a legitimate e-commerce site will have secure payment options and customer reviews. Trust your instincts — if something feels off, it probably is.

HASTE: BEWARE OF URGENCY

Fraudsters often create a sense of urgency to pressure victims into making hasty decisions. Ask, "Does this request seem urgent or too good to be true?" Scammers might push for immediate action, claiming limited-time offers or emergency situations. If a deal appears too good to be true, it likely is. Take a step back, breathe, and scrutinise the offer. Genuine businesses allow time for consideration and do not pressure customers into instant payments. Protect yourself by recognising that urgency is a common tactic used by fraudsters to exploit unsuspecting individuals.

EXCESS INFORMATION: GUARD YOUR PERSONAL DETAILS

Another crucial question to ask is, "Am I being asked for too much personal information?" Be wary if a transaction requires details beyond what is standard. No legitimate entity should ask for your full card number, CVV, PIN, or passwords via email or phone. Such requests are red flags indicating potential fraud. Sensitive information such as this is always accepted via secure channels such as secured payment gateways. Always provide only necessary information, and do so through secure channels. Safeguarding your personal information is essential in preventing identity theft and ensuring the security of your financial transactions.

CONTROL: ENSURE YOU INITIATED THE TRANSACTION

Control over your transactions is paramount. Ask yourself, "Have I initiated this transaction?" If the request for payment is unsolicited, proceed with caution. Scammers often pose as legitimate entities, reaching out with fake invoices or emergency requests. Ensure that every payment you make is for something you initiated. For example, if you receive an unexpected bill from a service provider, verify its legitimacy by contacting the provider directly using official contact details. There’s a well-known fraud in which you’ll get a text message warning of immediate disconnection of your electricity if you don’t make a payment right away. Maintaining control over your transactions helps prevent falling victim to unsolicited scams.

KNOWN PLATFORM: USE SECURE AND REPUTABLE CHANNELS

Lastly, consider, "Is this transaction happening on a secure platform?" Always use secure, reputable websites, known payment gateways, and trusted POS machines or ATMs. Look for HTTPS in web addresses and verified payment symbols. Avoid public Wi-Fi when making payments, as it is often less secure. Using trusted platforms ensures your transaction details are encrypted and less susceptible to interception. Staying within known, secure channels is a fundamental step in protecting your financial information.

In conclusion, the CHECK framework provides a decent method to prevent digital payment fraud. Remember: one can have all the technological and regulatory protections. But often, the weakest link in the chain is one’s own lack of awareness in a risky situation. By asking the right questions during digital transactions, you can boost your defences against fraudsters.

The writer is AVP, Communications, BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar.